UK firms delivered over £28 billion in dividends in the third quarter of 2026, marking the highest payout since 2019.

The dividend total in Q3 2026 was up 14.1%, compared to the same time last year, providing larger payments for income investors, according to new data from financial administration firm Computershare.

Its dividend monitor report shows profit distributions were led by banks and mining firms – the sectors returned more than £8.3 billion to investors.

Underlying dividend growth in Q3 2026, which excludes volatile special dividends and exchange-rate movement, was better than expected, reaching 8.4%, the best third-quarter performance since 2019.

This quarter’s strong performance follows a record Q2 for UK dividends, during which UK companies paid out their all-time highest levels of dividends.

With two thirds of all dividends paid between April and September, strong growth during the second and third quarters will make up for a sluggish first quarter and an expected weaker final quarter.

Mark Cleland, CEO of issuer services at Computershare, said: “The pronounced strength of the third quarter has significantly boosted what is turning out to be a very positive overall picture for UK dividends in 2026.

“Resilient economic growth supported company revenues and profits, while higher-for-longer interest rates and the upswing in commodity markets have provided an additional boost to two of the UK market’s biggest dividend-paying sectors.”

Cleland warned that the fourth quarter of 2026 could see lower distributions, partially driven by drink giant Diageo’s announcement in February that it would slash dividends.

“However, with so much of the year’s dividend income already paid, we now anticipate dividends to finish comfortably ahead of 2025 and headline payouts to deliver their strongest annual growth since 2019,” he added.

What are the best sectors for dividends?

Mining was the best-performing sector for dividend growth, as payments soared nearly 90% – up from £2 billion in Q3 2025 to £3.9 billion in Q3 2026.

Meanwhile, the banking sector returned £4.4 billion to investors through dividends in Q3 2026 – marking a 24.5% increase from £3.6 billion in the same quarter last year.

Computershare said the strong dividend performance came after major banks increased ordinary payouts alongside ongoing share buybacks amid strong profitability and capital generation.

The top sectors for dividends are:

The top dividend stocks

The top five dividend stocks in the UK collectively delivered £8 billion to shareholders in Q3 2026, accounting for 28% of payouts in the quarter.

Rio Tinto led the way, followed by Shell, National Grid, Glencore, and British American Tobacco.

The top dividend stocks in Q3 can be found below:

What’s the outlook for income investors?

Strong dividend performance in Q3 has led Computershare to improve its outlook for 2026, which is set to be the best year for dividends since 2019.

Total dividends are expected to reach £93 billion, up 7.3% on 2025’s figure, while regular payouts (which exclude one-off payments) are forecast to reach £8.8 billion, up 4.8% on the year.

Computershare said the outlook has been improved due to stronger than expected UK economic growth and favourable stock market conditions.

Computershare said earnings across the wider market have remained robust and that it expects regular dividend payouts to finish the year comfortably higher than in 2025.